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Various Modules of Erp System Are

This document provides an overview of enterprise resource planning (ERP) systems, including their purpose, modules, characteristics, implementation process, vendors, structure, features, advantages, disadvantages, and overall impact. An ERP system integrates internal and external resources across all business functions on a centralized database to facilitate information flow. It manages connections to outside stakeholders and consolidates all business operations into a unified system. ERP implementation requires significant changes and is best handled by outside consultants due to complexity.

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Sharif Khan
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59 views7 pages

Various Modules of Erp System Are

This document provides an overview of enterprise resource planning (ERP) systems, including their purpose, modules, characteristics, implementation process, vendors, structure, features, advantages, disadvantages, and overall impact. An ERP system integrates internal and external resources across all business functions on a centralized database to facilitate information flow. It manages connections to outside stakeholders and consolidates all business operations into a unified system. ERP implementation requires significant changes and is best handled by outside consultants due to complexity.

Uploaded by

Sharif Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction

An Enterprise Resource Planning (Erp) System Is an Integrated Computer-Based Application


Used to Manage Internal and External Resources, Including Tangible Assets, Financial
Resources, Materials, And Human Resources. It's Purpose Is to Facilitate the Flow of
Information Between All Business Functions Inside the Boundaries of the Organization and
Manage the Connections to Outside Stakeholders. Built On a Centralized Database and Normally
Utilizing a Common Computing Platform, Erp Systems Consolidate All Business Operations
Into a Uniform and Enterprise-Wide System Environment.

Various Modules of Erp System Are

 Transactional Backbone

 Financials

 Distribution

 Human Resources

 Product Lifecycle Management

 Advanced Applications

 Customer Relationship Management


 Supply Chain Management Software
 Purchasing
 Manufacturing
 Distribution
 Warehouse Management System
Characteristics of Erp Systems

 Modular Design comprising Many Distinct Business Modules Such As Financial,


Manufacturing, Accounting, Distribution, Etc.
 Use centralized Common Database management System (Dbms)
 The Modules Are Integrated and Provide seamless Data Flow among the Modules,
Increasing Operational Transparency Through Standard Interfaces
 Flexible and Offer Best Business Practices
 Require Time-Consuming tailoring and Configuration Setups for Integrating with the
Company’s Business Functions
 Modules Work In real Time with Online and Batch Processing Capabilities
 Internet-Enabled
 Financial and Business Information Is Often generated Automatically by Erp Systems
Based On Data Previously Entered, Without Further Human Instructions

Implementation of Erp Systems


Businesses Have a Wide Scope of Applications and Processes Throughout Their Functional
Units, Producing Erp Software systems that Are Typically Complex and Usually Impose
Significant Changes On Staff Work Practices. implementing Erp Software Is Typically Too
Complex for In-House Developers, Lacking the Required Skills, So It Is Desirable and Advisable to
Hire Outside Consultants Who Are Professionally Trained to Implement These Systems. this Is
Typically the Most Cost-Effective Way.
Erp Implementation Life Cycle

ERP Vendors

Microsoft:
Microsoft has no formal ownership experience program defined. Microsoft has developed its
cost management strategy based on a very low software price point and close to 100% out-of-
the-box deployments with little ability to customize the software
Oracle:
Addressing cost of ownership is at the heart of Oracle's philosophy for Enterprise Applications.
Based on the Oracle eBusiness Suite, an integrated suite of applications,
PeopleSoft:
Structured in a formal program, PeopleSoft dedicated over 1,000 developers and $800 million to
improve the Total Ownership Experience for customers
SAP :
Many users of SAP applications have, over the years, noted the complexity of SAP applications,
the resuiting high implementation costs, and consequent budget overruns
Siebel:
Siebel's customer experience initiative was first focused on customer satisfaction and high-level
ROI measurements. It is only recently (12+months) that Siebel has focused more specifically on
cost-of-ownership issues (mainly in response to customers' complaints). Siebel's improvements
to its software development process are guided by the experience and

Structure of the ERP system


Ideally, ERP delivers a single database that contains all data for the software modules, which
would include:
Manufacturing: Engineering, Bills of Material, Scheduling, Capacity, Work flow Management,
guality Control, Cost Management, Manufacturing Process, Manufacturing Projects,
Manufacturing Flow.
Supply Chain Management: Inventory, Order Entry, Purchasing, Product Configurator,
Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing,
Commission Calculation.
Financial: General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed
Assets.
Projects: Costing, Billing, Time and Expense, Activity Management.
Human Resources: Human Resources, Payroll, Training, Time & Attendance, Rostering,
Benefits.
Customer Relationship Management: Sales and Marketing, Commissions, Service.
Features of ERP
Some of the major features of ERP and what ERP can do for the business system are as below:

 ERP performs core Corporate activities and increases customer service and thereby
augmenting the Corporate Image.

 ERP bridges the information gap across the organization.

 ERP provides for complete integration of Systems not only across the departments in a
company but also across the companies under the same management.

 ERP is the only solution for better Project Management.

 ERP allows automatic introduction of latest technologies like Electronic Fund Transfer
(EFT). Electronic Data Interchange (EDI), Internet, Intranet, Video conferencing, E-
Commerce etc.

Components of ERP:
To enable the easy handling of the system the ERP has been divided into the following
Core subsystems:

 Sales and Marketing

 Master Scheduling

 Bill of Materials

 Purchasing

 Shop floor control Accounts Payable / Receivable

 Logistics

 Asset Management

 Financial Accounting
Advantages with ERP
It has now been ascertained that the integration of functions within the business structure is the
primary advantage of implementing an ERP system. However, there are many advantages that
may not at first be apparent with the integration of these functions. In order to more casily find
the advantages, it can first be worthwhile to acknowledge the many problems and risks that are
addressed and improved with the installation of an ERP system. Maintenance is one area that can
be greatly problematic within a Management Information System. When the system becomes
outdated or an update becomes available, the data can too casity be at risk. This is due to the fact
that each system requires its own update.

Disadvantages with ERP

Like all good things, ERP systems also come with their fair share of disadvantages from
implementation. They key is to determine whether the advantages outweigh the disadvantages.
With ERP, this is quite often a definitive yes. One primary reason it may not be worthwhile is a
lack of monetary means. But as for the actual system, the advantages far supersede the
disadvantages.

The Implementation Process

Before implementing an ERP system, an organization must weigh the costs and benefits for its
own specific entity. The high monetary cost may outweigh many of the possible advantages,
especially for smaller companies that do not have the means of purchase. However, once an
entity decides to install the system, many steps need to be carefully taken to ensure the
installation is successful and avoids exposure to as many risks as possible. It is different from
that of an MIS or MRP (Material Requirement Planning) system because of the integration of the
components. The integration of systems enhances the complexity of implementation.
Overall Impact

The implementation of an ERP system will affect more than just the organization itself. It will
also affect the stakeholders of the business as well as the internal and external auditors. A
primary stakeholder affected by an ERP system is that of the organization's customers.
Customers will be served more efficiently and effectively with the integration of organization
processes. Auditors are also affected. They are required to leam and understand an ERP system
and how it works. New auditing processes need to be applied as an ERP system cannot be
evaluated the same as other systems. Auditors will also need to pay special attention to the
integrity of the business data and ensure that everything is running smoothly.

Conclusion

The question of whether an ERP system should be implemented in a certain organization


depends on several factors. It depends on the size and financial stability of organizations. Also,
the establishment of simpler ERP systems can become the solution to smaller companies
affording the new system. Today, the implementation of an ERP system can provide the
following for an organization. It will integrate organizational processes to create a more
associated company. It will also assimilate the organization with its customers and suppliers in
ways that were not formally possible. The future of ERP will facilitate growth for companies and
allow them to expand organizational goals and possibilities.

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